DETERMINANTS OF FINANCIAL PERFORMANCE OF FIRMS LISTED ON THE RWANDA STOCK EXCHANGE PERIOD: 2017-2020
Abstract
The general objective of this study was to assess determinants of financial performance of firms listed on the Rwanda Stock Exchange. Specifically the study ascertained the influence of dividend policy on the financial performance of Rwanda Stock Exchange-listed companies, determine the influence of capital structure on the financial performance of Rwanda Stock Exchange-listed firms, assess the influence of corporate governance on the financial performance of Rwanda Stock Exchange-listed companies and establish the influence of timely rendition of information on the financial performance of firms listed on the Rwanda Stock Exchange. For this case of the study the survey was carried out in the work of RSE. The target population for this study was employees of the firms listed at Rwanda Stock Exchange as at the year 2020. Therefore, the total population involved in this study was 26,780 People. The researcher applied the formula developed by Solvin to determine the sample size. 394 respondents selected from firms listed at Rwanda Stock Exchange. The study purposively sampled the calculated sample size from the ten companies. The study applied the following tools of data collection; documentary and questionnaires. The researcher used the descriptive, bi-variate and multivariate analysis. The results showed that there is strong correlation between capital structure and financial performance of Rwanda Stock Exchange as Pearson correlation is 0.804. Since the Pearson Correlation value was 0.805 and it was significant, the researcher proved that there is strong and positive relationship between Corporate governance and financial performance of Rwanda Stock Exchange. The results showed that there is strong correlation between Timely rendition of Information and financial performance of Rwanda Stock Exchange as Pearson correlation was 0.709. Regulatory and statutory returns should be clearly defined by companies, and guidelines for reporting and returning should be self-explanatory and clear.
Key Words: Capital structure, Corporate governance, Dividend policy, Stock exchange, Timely rendition of information, Financial performance.
CITATION: Mbabazi, M., & Kihooto, E. M. (2022). Determinants of financial performance of firms listed on the Rwanda Stock Exchange period: 2017-2020. The Strategic Journal of Business & Change Management, 9 (2), 873 – 889.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i2.2305
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